Child Benefit Tax Charge
Discussion
Puzzles said:
borcy said:
Cheers, that's one. 
i was just thinking at that pay level it's quite a chunk.
I’ve been putting £40k into mine, I’ll wind it down in a few years though. i was just thinking at that pay level it's quite a chunk. I think that's quite a bit, I just wondered how common it was.
I would say that pretty much every family man earning £60k a year is squirrelling £10k a year away. My situation is that with a marginal rate of 79% I am "only" sacrificing £2,100 a year in my back pocket.
That's avoiding a weekly takeaway and using the slow cooker instead. It's having a beer in the Wetherspoons rather than the Slug. It's always taking sandwiches in, and never eating out for lunch.
My brother in law has 6 kids. No way is he NOT going to sacrifice!
That's avoiding a weekly takeaway and using the slow cooker instead. It's having a beer in the Wetherspoons rather than the Slug. It's always taking sandwiches in, and never eating out for lunch.
My brother in law has 6 kids. No way is he NOT going to sacrifice!
Given min wage is now £20k, they've basically said f**k you to people that have gone to the effort of carving out a slightly above average career and had kids.
So on top of student loans you're giving nearly 2/3 to the govt.
What the hell is the point?
I can't help but think that those that arsed about at school and ended up in manual labour jobs were onto something. In my experience those that actually knuckled down are now being shafted.
The exception is those that "made it" and have financial advisors, ltd companies and dividends, etc.
Us on PAYE are utter mugs
So on top of student loans you're giving nearly 2/3 to the govt.
What the hell is the point?
I can't help but think that those that arsed about at school and ended up in manual labour jobs were onto something. In my experience those that actually knuckled down are now being shafted.
The exception is those that "made it" and have financial advisors, ltd companies and dividends, etc.
Us on PAYE are utter mugs
LowTread said:
Given min wage is now £20k, they've basically said f**k you to people that have gone to the effort of carving out a slightly above average career and had kids.
So on top of student loans you're giving nearly 2/3 to the govt.
What the hell is the point?
I can't help but think that those that arsed about at school and ended up in manual labour jobs were onto something. In my experience those that actually knuckled down are now being shafted.
The exception is those that "made it" and have financial advisors, ltd companies and dividends, etc.
Us on PAYE are utter mugs
You’re right, I’ve long said paye is the worst place to be. I’m proud of a lot of my mates and all the ones that have done best are not paye. So on top of student loans you're giving nearly 2/3 to the govt.
What the hell is the point?
I can't help but think that those that arsed about at school and ended up in manual labour jobs were onto something. In my experience those that actually knuckled down are now being shafted.
The exception is those that "made it" and have financial advisors, ltd companies and dividends, etc.
Us on PAYE are utter mugs
borcy said:
Sheepshanks said:
borcy said:
Sorry, I'm not sure what you're getting at.
Your comment about someone on £59K not going to be putting £10K into their pension.Many public sector workers are at 10% or more pension contributions. Just looked up the fireman’s scheme - 13.5% at that salary.
Edited by Sheepshanks on Saturday 24th February 10:32
17% pension contribution (plus 8% employer contribution)
£150 into a share scheme
£208 into cycle to work scheme
£78 Annual Paid leave purchase
I worked out I sacrifice £1050/ month currently.
As others have said with wage inflation, the 50k threshold seems pretty low.
Cats_pyjamas said:
borcy said:
Sheepshanks said:
borcy said:
Sorry, I'm not sure what you're getting at.
Your comment about someone on £59K not going to be putting £10K into their pension.Many public sector workers are at 10% or more pension contributions. Just looked up the fireman’s scheme - 13.5% at that salary.
Edited by Sheepshanks on Saturday 24th February 10:32
17% pension contribution (plus 8% employer contribution)
£150 into a share scheme
£208 into cycle to work scheme
£78 Annual Paid leave purchase
I worked out I sacrifice £1050/ month currently.
As others have said with wage inflation, the 50k threshold seems pretty low.
I'll be pushing just over 70k earnings with salary just under 50k in this FY. But the last 12 months has been pretty busy with work. My income varies so much month to month I do feel short at times, if I've been working away I could hit 8-10k, other months I'll see 2.5k. However I can always pause the shares scheme and reduce pension contributions if I needed to. Plus we have a float we can dip into. The wife is on a fair salary as a teacher, which is well below the 50k threshold but certainly helps on the overall context.
borcy said:
I'm not a reddit, but from on here alone it does seem a thing.
Most of it depends on the lifestyle you’ve created for yourself and how that matches the income you have. Many people increase their lifestyle with their income. We haven’t really changed the way we lived when earning approx 40% of what we do now. It means we can afford to save a lot of money each year. Which in turn of course means that we can stop working sooner should we want to.
Lots of people in my work are salary sacrificing 10k+ on salaries of less than 60k. We are in Scotland and everyone is avoiding the 52% tax and NI threshold at 43k so the CBTC doesn't come into it. Personally I am salary sacrificing a car as well as putting about 7% into my pension which with employer contributions adds up to around 24% overall. I know of some colleagues who are putting 20%+ of their 50k salary into pensions on top of the employer contribution!
From the Sunday Times;
Hunt had been weighing up a 2p cut in income tax but the £13.7 billion a year cost makes it unaffordable in the current climate. The government has also shelved plans to cut stamp duty and inheritance tax and to extend child benefit to middle-income families. The measures will be considered for an autumn statement later in the year or the Conservative Party’s election manifesto.
Sounds like the HICBC isn’t changing according to that article……?
Hunt had been weighing up a 2p cut in income tax but the £13.7 billion a year cost makes it unaffordable in the current climate. The government has also shelved plans to cut stamp duty and inheritance tax and to extend child benefit to middle-income families. The measures will be considered for an autumn statement later in the year or the Conservative Party’s election manifesto.
Sounds like the HICBC isn’t changing according to that article……?
John87 said:
Lots of people in my work are salary sacrificing 10k+ on salaries of less than 60k. We are in Scotland and everyone is avoiding the 52% tax and NI threshold at 43k so the CBTC doesn't come into it. Personally I am salary sacrificing a car as well as putting about 7% into my pension which with employer contributions adds up to around 24% overall. I know of some colleagues who are putting 20%+ of their 50k salary into pensions on top of the employer contribution!
Pretty similar to my situation, it's good to know others are playing stubborn with tax!22% of my salary + a further 14% of employer contributions is going into my pension to avoid it currently.
It meant a fair bit of money management, but it has taught me some good ways to stop wasting money on stuff I didn't really need.
It's a cost to the hospitality industry though, as I'm eating out less.
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